Dollar-Cost Averaging (DCA) is a strategy where you invest a fixed amount at regular intervals regardless of price. This calculator shows how much BTC you'd accumulate over time.
DCA removes emotion from investing. By investing the same amount regularly, you automatically buy more when prices are low and less when prices are high, averaging out your cost basis over time.
Weekly DCA tends to outperform monthly. Historical backtests show that weekly purchases provide slightly better average entry prices than monthly, though the difference is small over long periods.
Consistency beats timing. Studies show that even buying at every all-time high with DCA still produces positive returns over 3+ year periods for Bitcoin. The key is never stopping.
Set it and forget it. Most exchanges (Coinbase, Kraken, Binance) offer automatic recurring purchases. Set up your DCA and let it run without checking prices daily.
Consider tax implications. Each DCA purchase creates a separate tax lot. Use FIFO or specific identification methods when selling to optimize your tax position.